Czech Republic Tax Agency Announces 2025 VAT Changes

The Czech Financial Administration Jan. 2 announced various VAT changes effective Jan. 1. The announcement includes measures to: 1) introduce a cross-border VAT regime for small enterprises, allowing them to use VAT exemptions in other EU member states; 2) introduce two new turnover thresholds of 2,000,000 Czech korunas (US$82,006) and 2,536,500 korunas (US$104,004) for VAT payer registration; 3) allow payers to choose a quarterly taxation period if their domestic turnover doesn’t exceed 15,000,000 korunas (US$615,026); 4) clarify and expand rules for VAT groups; 5) extend the deadline for correcting the tax base and tax deductions to seven years and modify ...